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CS Professional · Arbitration, Mediation and Conciliation · Arbitral Proceedings, Pleadings and Evidence

Anand Realty and Sahyadri Builders, after a failed conciliation, are in arbitration. Anand's counsel argues that because section 19(1) says the tribunal is not bound by the Indian Evidence Act, 1872, the tribunal may freely admit Sahyadri's conciliation admissions. Which response is correct?

The argument fails. Section 19(1) only releases the tribunal from the Indian Evidence Act and the Code of Civil Procedure, while section 81(b) separately prohibits parties from relying on admissions made by the other party in conciliation, so the admissions stay inadmissible.

  1. ACorrect, because section 19(1) overrides all other provisions of Part I
  2. BIncorrect, because the tribunal is bound by the Evidence Act in all matters involving conciliation
  3. CIncorrect, because section 81 independently prohibits parties from relying on the other party's admissions made in conciliation, irrespective of the Evidence ActCorrect
  4. DCorrect, provided the tribunal records reasons for admitting them

Explanation

Section 19(1) only frees the tribunal from the Evidence Act and CPC procedure. Section 81(b) is a separate statutory restriction on parties relying on the other party's conciliation admissions in arbitral or judicial proceedings. Recording reasons does not cure the bar.

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